§ 636. Additional powers

Transfer of Functions

For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see section 315(a)(1) of Title 6, Domestic Security.

For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6.

Restriction

Pub. L. 117–6, § 2(c), Mar. 30, 2021, 135 Stat. 250, provided that: “From June 1, 2021, through June 30, 2021, the Administrator of the Small Business Administration shall not accept new lender applications for loans under paragraph (36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)) and shall only process such lender applications that have been submitted to the Administrator before June 1, 2021.”

Subsequent Paycheck Protection Program Loans

Pub. L. 116–260, div. N, title II, § 276(b), Dec. 27, 2020, 134 Stat. 1979, provided that: “For purposes of the Internal Revenue Code of 1986 [26 U.S.C. 1 et seq.], in the case of any taxable year ending after the date of the enactment of this Act [Dec. 27, 2020]— “(1) no amount shall be included in the gross income of an eligible entity (within the meaning of subparagraph (J) of section 7(a)(37) of the Small Business Act [15 U.S.C. 636(a)(37)]) by reason of forgiveness of indebtedness described in clause (ii) of such subparagraph, “(2) no deduction shall be denied, no tax attribute shall be reduced, and no basis increase shall be denied, by reason of the exclusion from gross income provided by paragraph (1), and “(3) in the case of an eligible entity that is a partnership or S corporation—“(A) any amount excluded from income by reason of paragraph (1) shall be treated as tax exempt income for purposes of sections 705 and 1366 of the Internal Revenue Code of 1986 [26 U.S.C. 705, 1366], and “(B) except as provided by the Secretary of the Treasury (or the Secretary’s delegate), any increase in the adjusted basis of a partner’s interest in a partnership under section 705 of the Internal Revenue Code of 1986 with respect to any amount described in subparagraph (A) shall equal the partner’s distributive share of deductions resulting from costs giving rise to the forgiveness of indebtedness referred to in paragraph (1).”

Demographic Information on Loan Applications

Pub. L. 116–260, div. N, title III, § 309, Dec. 27, 2020, 134 Stat. 2000, provided that: “On and after the date of enactment of this Act [Dec. 27, 2020], any loan origination application for a loan under paragraph (36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)), as amended and added by this division, shall include a means by which the applicant for the loan may, at the discretion of the applicant, submit demographic information of the owner of the recipient of the loan, including the sex, race, ethnicity, and veteran status of the owner.”

Eligible Churches and Religious Organizations

Pub. L. 116–260, div. N, title III, § 311(c), Dec. 27, 2020, 134 Stat. 2007, provided that: “(1) Sense of congress.—It is the sense of Congress that the interim final rule of the [Small Business] Administration entitled ‘Business Loan Program Temporary Changes; Paycheck Protection Program’ (85 Fed. Reg. 20817 (April 15, 2020)) properly clarified the eligibility of churches and religious organizations for loans made under paragraph (36) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)). “(2) Applicability of prohibition.—The prohibition on eligibility established by section 120.110(k) of title 13, Code of Federal Regulations, or any successor regulation, shall not apply to a loan under paragraph (36) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)).”

Increased Ability for Paycheck Protection Program Borrowers To Request an Increase in Loan Amount Due to Updated Regulations

Pub. L. 116–260, div. N, title III, § 312, Dec. 27, 2020, 134 Stat. 2007, provided that: “(a) Definitions.—In this section—“(1) the terms ‘covered loan’ and ‘eligible recipient’ have the meanings given those terms in 7(a)(36)(A) of the Small Business Act (15 U.S.C. 636(a)(36)(A)); and “(2) the term ‘included covered loan’ means a covered loan for which, as of the date of enactment of this Act [Dec. 27, 2020], the borrower had not received forgiveness under section 1106 of the CARES Act [15 U.S.C. 9005], as in effect on the day before such date of enactment. “(b) Rules or Guidance.—Not later than 17 days after the date of enactment of this Act, and without regard to the notice requirements under section 553(b) of title 5, United States Code, the Administrator [of the Small Business Administration] shall issue rules or guidance to ensure that an eligible recipient of an included covered loan that returns amounts disbursed under the included covered loan or does not accept the full amount of the included covered loan for which the eligible recipient was approved—“(1) in the case of an eligible recipient that returned all or part of an included covered loan, the eligible recipient may reapply for a covered loan for an amount equal to the difference between the amount retained and the maximum amount applicable; and “(2) in the case of an eligible recipient that did not accept the full amount of an included covered loan, the eligible recipient may request a modification to increase the amount of the covered loan to the maximum amount applicable, subject to the requirements of section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)). “(c) Interim Final Rules.—Notwithstanding the interim final rule issued by the Administration entitled ‘Business Loan Program Temporary Changes; Paycheck Protection Program—Loan Increases’ (85 Fed. Reg. 29842 (May 19, 2020)), an eligible recipient of an included covered loan that is eligible for an increased covered loan amount as a result of any interim final rule that allows for covered loan increases may submit a request for an increase in the included covered loan amount even if—“(1) the initial covered loan amount has been fully disbursed; or “(2) the lender of the initial covered loan has submitted to the [Small Business] Administration a Form 1502 report related to the covered loan.”

Farm Credit System Institutions

Pub. L. 116–260, div. N, title III, § 314, Dec. 27, 2020, 134 Stat. 2009, provided that: “(a) Definition of Farm Credit System Institution.—In this section, the term ‘Farm Credit System institution’—“(1) means an institution of the Farm Credit System chartered under the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.); and “(2) does not include the Federal Agricultural Mortgage Corporation. “(b) Facilitation of Participation in PPP and Second Draw Loans.—“(1) Applicable rules.—Solely with respect to loans under paragraphs (36) and (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)), Farm Credit Administration regulations and guidance issued as of July 14, 2020, and compliance with such regulations and guidance, shall be deemed functionally equivalent to requirements referenced in section 3(a)(iii)(II) of the interim final rule of the [Small Business] Administration entitled ‘Business Loan Program Temporary Changes; Paycheck Protection Program’ (85 Fed. Reg. 20811 (April 15, 2020)) or any similar requirement referenced in that interim final rule in implementing such paragraph (37). “(2) Applicability of certain loan requirements.—For purposes of making loans under paragraph (36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)) or forgiving those loans in accordance with section 7A of the Small Business Act [15 U.S.C. 636m], as redesignated and transferred by section 304 of this Act, and subparagraph (J) of such paragraph (37), sections 4.13, 4.14, and 4.14A of the Farm Credit Act of 1971 (12 U.S.C. 2199, 2202, 2202a) (including regulations issued under those sections) shall not apply. “(3) Risk weight.—“(A) In general.—With respect to the application of Farm Credit Administration capital requirements, a loan described in subparagraph (B)—“(i) shall receive a risk weight of zero percent; and “(ii) shall not be included in the calculation of any applicable leverage ratio or other applicable capital ratio or calculation. “(B) Loans described.—A loan referred to in subparagraph (A) is—“(i) a loan made by a Farm Credit Bank described in section 1.2(a) of the Farm Credit Act of 1971 (12 U.S.C. 2002(a)) to a Federal Land Bank Association, a Production Credit Association, or an agricultural credit association described in that section to make loans under paragraph (36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)) or forgive those loans in accordance with section 7A of the Small Business Act [15 U.S.C. 636m], as redesignated and transferred by section 304 of this Act, and subparagraph (J) of such paragraph (37); or “(ii) a loan made by a Federal Land Bank Association, a Production Credit Association, an agricultural credit association, or the bank for cooperatives described in section 1.2(a) of the Farm Credit Act of 1971 (12 U.S.C. 2002(a)) under paragraph (36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)). “(c) Effective Date; Applicability.—This section shall be effective as if included in the CARES Act (Public Law 116–136; 134 Stat. 281) and shall apply to any loan made pursuant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) before, on, or after the date of enactment of this Act [Dec. 27, 2020], including forgiveness of such a loan.”

Conflicts of Interest

Pub. L. 116–260, div. N, title III, § 322, Dec. 27, 2020, 134 Stat. 2017, provided that: “(a) Definitions.—In this section:“(1) Controlling interest.—The term ‘controlling interest’ means owning, controlling, or holding not less than 20 percent, by vote or value, of the outstanding amount of any class of equity interest in an entity. “(2) Covered entity.—“(A) Definition.—The term ‘covered entity’ means an entity in which a covered individual directly or indirectly holds a controlling interest. “(B) Treatment of securities.—For the purpose of determining whether an entity is a covered entity, the securities owned, controlled, or held by 2 or more individuals who are related as described in paragraph (3)(B) shall be aggregated. “(3) Covered individual.—The term ‘covered individual’ means—“(A) the President, the Vice President, the head of an Executive department, or a Member of Congress; and “(B) the spouse, as determined under applicable common law, of an individual described in subparagraph (A). “(4) Executive department.—The term ‘Executive department’ has the meaning given the term in section 101 of title 5, United States Code. “(5) Member of congress.—The term ‘Member of Congress’ means a Member of the Senate or House of Representatives, a Delegate to the House of Representatives, and the Resident Commissioner from Puerto Rico. “(6) Equity interest.—The term ‘equity interest’ means—“(A) a share in an entity, without regard to whether the share is—“(i) transferable; or “(ii) classified as stock or anything similar; “(B) a capital or profit interest in a limited liability company or partnership; or “(C) a warrant or right, other than a right to convert, to purchase, sell, or subscribe to a share or interest described in subparagraph (A) or (B), respectively. “(b) Requirement for Disclosure Regarding Existing Loans.—For any loan under paragraph (36) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)) made to a covered entity before the date of enactment of this Act [Dec. 27, 2020]—“(1) if, before the date of enactment of this Act, the covered entity submitted an application for forgiveness under section 1106 of the CARES Act (15 U.S.C. 9005) (as such section was in effect on the day before the date of enactment of this Act) with respect to such loan, not later than 30 days after the date of enactment of this Act, the principal executive officer, or individual performing a similar function, of the covered entity shall disclose to the Administrator that the entity is a covered entity; and “(2) if, on or after the date of enactment of this Act, the covered entity submits an application for forgiveness under section 7A of the Small Business Act [15 U.S.C. 636m], as redesignated and transferred by section 304 of this Act, with respect to such loan, not later than 30 days after submitting the application, the principal executive officer, or individual performing a similar function, of the covered entity shall disclose to the Administrator [of the Small Business Administration] that the entity is a covered entity. “(c) Ban on New Loans.—On and after the date of enactment of this Act [Dec. 27, 2020], a loan under paragraph (36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)), as added and amended by this Act, may not be made to a covered entity.”

Temporary Administrative Fee Waiver

Pub. L. 116–260, div. N, title III, § 327(a), Dec. 27, 2020, 134 Stat. 2037, provided that: “(1) In general.—During the period beginning on the date of enactment of this Act [Dec. 27, 2020] and ending on September 30, 2021, and to the extent that the cost of such elimination or reduction of fees is offset by appropriations, with respect to each loan guaranteed under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) (including a recipient of assistance under the Community Advantage Pilot Program of the [Small Business] Administration) for which an application is approved or pending approval on or after the date of enactment of this Act, the Administrator [of the Small Business Administration] shall—“(A) in lieu of the fee otherwise applicable under section 7(a)(23)(A) of the Small Business Act (15 U.S.C. 636(a)(23)(A)), collect no fee or reduce fees to the maximum extent possible; and “(B) in lieu of the fee otherwise applicable under section 7(a)(18)(A) of the Small Business Act (15 U.S.C. 636(a)(18)(A)), collect no fee or reduce fees to the maximum extent possible. “(2) Application of fee eliminations or reductions.—To the extent that amounts are made available to the Administrator for the purpose of fee eliminations or reductions under paragraph (1), the Administrator shall—“(A) first use any amounts provided to eliminate or reduce fees paid by small business borrowers under clauses (i) through (iii) of section 7(a)(18)(A) of the Small Business Act (15 U.S.C. 636(a)(18)(A)), to the maximum extent possible; and “(B) then use any amounts provided to eliminate or reduce fees under 7(a)(23)(A) of the Small Business Act (15 U.S.C. 636(a)(23)(A)).”

Temporary Waiver of Technical Assistance Grants Matching Requirements and Flexibility on Pre- and Post-Loan Assistance

Pub. L. 116–260, div. N, title III, § 329(b), Dec. 27, 2020, 134 Stat. 2042, provided that: “During the period beginning on the date of enactment of this Act [Dec. 27, 2020] and ending on September 30, 2021, the [Small Business] Administration shall waive— “(1) the requirement to contribute non-Federal funds under section 7(m)(4)(B) of the Small Business Act (15 U.S.C. 636(m)(4)(B)); and “(2) the limitation on amounts allowed to be expended to provide information and technical assistance under clause (i) of section 7(m)(4)(E) of the Small Business Act (15 U.S.C. 636(m)(4)(E)) and enter into third party contracts for the provision of technical assistance under clause (ii) of such section 7(m)(4)(E).”

Temporary Duration of Loans to Borrowers

Pub. L. 116–260, div. N, title III, § 329(c), Dec. 27, 2020, 134 Stat. 2042, provided that: “(1) In general.—During the period beginning on the date of enactment of this Act [Dec. 27, 2020] and ending on September 30, 2021, the duration of a loan made by an eligible intermediary under section 7(m) of the Small Business Act (15 U.S.C. 636(m))—“(A) to an existing borrower may be extended to not more than 8 years; and “(B) to a new borrower may be not more than 8 years. “(2) Reversion.—On and after October 1, 2021, the duration of a loan made by an eligible intermediary to a borrower under section 7(m) of the Small Business Act (15 U.S.C. 636(m)) shall be 7 years or such other amount established by the Administrator [of the Small Business Administration].”

Findings

Pub. L. 114–88, div. A, § 1002, Nov. 25, 2015, 129 Stat. 687, provided that: “Congress finds the following: “(1) In 2012, Superstorm Sandy caused substantial physical and economic damage to the United States, and New York in particular. “(2) For businesses and homeowners, the primary means of obtaining long-term Federal financial assistance in the wake of disasters such as Superstorm Sandy is through the Small Business Administration’s Disaster Loan Program. “(3) With regard to the Small Business Administration’s operation of the Disaster Loan Program after Superstorm Sandy, the Government Accountability Office found that the Administration did not meet its timeliness goals for processing business loan applications. “(4) According to the Government Accountability Office, the Small Business Administration stated that it was challenged by an unexpectedly high volume of loan applications that it received early in its response to Superstorm Sandy. “(5) As a result, many businesses and homeowners affected by Superstorm Sandy were unable to apply for financing from the Small Business Administration.”

Availability of Funds

Pub. L. 111–240, title I, § 1131(c), Sept. 27, 2010, 124 Stat. 2514, provided that: “Any amounts provided to the Administrator [of the Small Business Administration] for the purposes of carrying out section 7(l) of the Small Business Act [15 U.S.C. 636(l)], as amended by subsection (a), shall remain available until expended.”

Marketing and Outreach

Pub. L. 110–234, title XII, § 12063(b), May 22, 2008, 122 Stat. 1408, and Pub. L. 110–246, § 4(a), title XII, § 12063(b), June 18, 2008, 122 Stat. 1664, 2170, provided that: “Not later than 90 days after the date of enactment of this Act [June 18, 2008], the Administrator shall create a marketing and outreach plan that— “(1) encourages a proactive approach to the disaster relief efforts of the Administration; “(2) makes clear the services provided by the Administration, including contact information, application information, and timelines for submitting applications, the review of applications, and the disbursement of funds; “(3) describes the different disaster loan programs of the Administration, including how they are made available and the eligibility requirements for each loan program; “(4) provides for regional marketing, focusing on disasters occurring in each region before the date of enactment of this Act [June 18, 2008], and likely scenarios for disasters in each such region; and “(5) ensures that the marketing plan is made available at small business development centers and on the website of the Administration.”

[Pub. L. 110–234 and Pub. L. 110–246 enacted identical provisions. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246, set out as a note under section 8701 of Title 7, Agriculture.]

[“Administration” and “Administrator”, referred to in Pub. L. 110–246, § 12063(b), set out above, as meaning the Small Business Administration and the Administrator thereof, see section 636e of this title.]

Definition of Terms Used in Pub. L. 110–186

Pub. L. 110–186, § 3, Feb. 14, 2008, 122 Stat. 623, provided that: “In this Act [see Short Title of 2008 Amendment note set out under section 631 of this title]— “(1) the term ‘activated’ means receiving an order placing a Reservist on active duty; “(2) the term ‘active duty’ has the meaning given that term in section 101 of title 10, United States Code; “(3) the terms ‘Administration’ and ‘Administrator’ mean the Small Business Administration and the Administrator thereof, respectively; “(4) the term ‘Reservist’ means a member of a reserve component of the Armed Forces, as described in section 10101 of title 10, United States Code; “(5) the term ‘Service Corps of Retired Executives’ means the Service Corps of Retired Executives authorized by section 8(b)(1) of the Small Business Act (15 U.S.C. 637(b)(1)); “(6) the terms ‘service-disabled veteran’ and ‘small business concern’ have the meaning as in section 3 of the Small Business Act (15 U.S.C. 632); “(7) the term ‘small business development center’ means a small business development center described in section 21 of the Small Business Act (15 U.S.C. 648); and “(8) the term ‘women’s business center’ means a women’s business center described in section 29 of the Small Business Act (15 U.S.C. 656).”

Establishment of Pre-Consideration Process and Outreach and Technical Assistance Program

Pub. L. 110–186, title II, § 201(b), (c), Feb. 14, 2008, 122 Stat. 627, 628, provided that: “(b) Pre-Consideration Process.—“(1) Definition.—In this subsection, the term ‘eligible Reservist’ means a Reservist who—“(A) has not been ordered to active duty; “(B) expects to be ordered to active duty during a period of military conflict; and “(C) can reasonably demonstrate that the small business concern for which that Reservist is a key employee will suffer economic injury in the absence of that Reservist. “(2) Establishment.—Not later than 6 months after the date of enactment of this Act [Feb. 14, 2008], the Administrator shall establish a pre-consideration process, under which the Administrator—“(A) may collect all relevant materials necessary for processing a loan to a small business concern under section 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)) before an eligible Reservist employed by that small business concern is activated; and “(B) shall distribute funds for any loan approved under subparagraph (A) if that eligible Reservist is activated. “(c) Outreach and Technical Assistance Program.—“(1) In general.—Not later than 6 months after the date of enactment of this Act [Feb. 14, 2008], the Administrator, in consultation with the Secretary of Veterans Affairs and the Secretary of Defense, may develop a comprehensive outreach and technical assistance program (in this subsection referred to as the ‘program’) to—“(A) market the loans available under section 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)) to Reservists, and family members of Reservists, that are on active duty and that are not on active duty; and “(B) provide technical assistance to a small business concern applying for a loan under that section. “(2) Components.—The program shall—“(A) incorporate appropriate websites maintained by the Administration, the Department of Veterans Affairs, and the Department of Defense; and “(B) require that information on the program is made available to small business concerns directly through—“(i) the district offices and resource partners of the Administration, including small business development centers, women’s business centers, and the Service Corps of Retired Executives; and “(ii) other Federal agencies, including the Department of Veterans Affairs and the Department of Defense. “(3) Report.—“(A) In general.—Not later than 6 months after the date of enactment of this Act, and every 6 months thereafter until the date that is 30 months after such date of enactment, the Administrator shall submit to Congress a report on the status of the program. “(B) Contents.—Each report submitted under subparagraph (A) shall include—“(i) for the 6-month period ending on the date of that report— “(I) the number of loans approved under section 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)); “(II) the number of loans disbursed under that section; and “(III) the total amount disbursed under that section; and “(ii) recommendations, if any, to make the program more effective in serving small business concerns that employ Reservists.”

Reservist Loans

Pub. L. 110–186, title II, § 202, Feb. 14, 2008, 122 Stat. 629, provided that: “(a) In General.—The Administrator and the Secretary of Defense shall develop a joint website and printed materials providing information regarding any program for small business concerns that is available to veterans or Reservists. “(b) Marketing.—The Administrator is authorized—“(1) to advertise and promote the program under section 7(b)(3) of the Small Business Act [15 U.S.C. 636(b)(3)] jointly with the Secretary of Defense and veterans’ service organizations; and “(2) to advertise and promote participation by lenders in such program jointly with trade associations for banks or other lending institutions.”

Temporary Extension and Expansion of Loan Programs

Pub. L. 108–217, §§ 4–8, Apr. 5, 2004, 118 Stat. 591–594, provided for the temporary extension and expansion of certain loan programs under 15 U.S.C. 636(a) beginning on Apr. 5, 2004, and ending on Sept. 30, 2004.

Budgetary Treatment of Loans and Financings

Pub. L. 107–100, § 6(c), Dec. 21, 2001, 115 Stat. 971, provided for special budgetary treatment of certain loans and financings by the Small Business Administration under 15 U.S.C. 636(a) during the 2-year period beginning on Oct. 1, 2002.

Enhanced Publicity During Operation Allied Force

Pub. L. 106–50, title IV, § 402(c), Aug. 17, 1999, 113 Stat. 246, provided for enhanced publicity of the availability of assistance during Operation Allied Force and for 120 days thereafter.

Evaluation of Predisaster Mitigation Pilot Program

Pub. L. 106–24, § 1(c), Apr. 27, 1999, 113 Stat. 39, provided that, on Jan. 31, 2003, the Administrator of the Small Business Administration was to submit to the Committees on Small Business of the House of Representatives and the Senate a report on the effectiveness of the pilot program authorized by subsec. (b)(1)(C) of this section.

Congressional Findings Regarding Small Business Year 2000 Readiness

Pub. L. 106–8, § 2, Apr. 2, 1999, 113 Stat. 13, provided that: “Congress finds that— “(1) the failure of many computer programs to recognize the Year 2000 may have extreme negative financial consequences in the Year 2000, and in subsequent years for both large and small businesses; “(2) small businesses are well behind larger businesses in implementing corrective changes to their automated systems; “(3) many small businesses do not have access to capital to fix mission critical automated systems, which could result in severe financial distress or failure for small businesses; and “(4) the failure of a large number of small businesses due to the Year 2000 computer problem would have a highly detrimental effect on the economy in the Year 2000 and in subsequent years.”

Transfer of Funds

Pub. L. 105–135, title II, § 202(b), Dec. 2, 1997, 111 Stat. 2600, provided that: “(1) In general.—No funds are authorized to be appropriated or otherwise provided to carry out the grant program under section 7(m)(4)(F) of the Small Business Act (15 U.S.C. 636(m)(4)(F)) (as added by this section), except by transfer from another department or agency of the Federal Government to the Administration in accordance with this subsection. “(2) Limitation on amounts.—The total amount transferred to the Administration from other departments and agencies of the Federal Government to carry out the grant program under section 7(m)(4)(F) of the Small Business Act (15 U.S.C. 636(m)(4)(F)) (as added by this section) shall not exceed—“(A) $3,000,000 for fiscal year 1998; “(B) $4,000,000 for fiscal year 1999; and “(C) $5,000,000 for fiscal year 2000.”

Defense Loan and Technical Assistance Program

Pub. L. 105–135, title V, § 507, Dec. 2, 1997, 111 Stat. 2625, provided that: “(a) DELTA Program Authorized.—“(1) In general.—The Administrator may administer the Defense Loan and Technical Assistance program in accordance with the authority and requirements of this section. “(2) Expiration of authority.—The authority of the Administrator to carry out the DELTA program under paragraph (1) shall terminate when the funds referred to in subsection (g)(1) have been expended. “(3) DELTA program defined.—In this section, the terms ‘Defense Loan and Technical Assistance program’ and ‘DELTA program’ mean the Defense Loan and Technical Assistance program that has been established by a memorandum of understanding entered into by the Administrator and the Secretary of Defense on June 26, 1995. “(b) Assistance.—“(1) Authority.—Under the DELTA program, the Administrator may assist small business concerns that are economically dependent on defense expenditures to acquire dual-use capabilities. “(2) Forms of assistance.—Forms of assistance authorized under paragraph (1) are as follows:“(A) Loan guarantees.—Loan guarantees under the terms and conditions specified under this section and other applicable law. “(B) Nonfinancial assistance.—Other forms of assistance that are not financial. “(c) Administration of Program.—In the administration of the DELTA program under this section, the Administrator shall—“(1) process applications for DELTA program loan guarantees; “(2) guarantee repayment of the resulting loans in accordance with this section; and “(3) take such other actions as are necessary to administer the program. “(d) Selection and Eligibility Requirements for DELTA Loan Guarantees.—“(1) In general.—The selection criteria and eligibility requirements set forth in this subsection shall be applied in the selection of small business concerns to receive loan guarantees under the DELTA program. “(2) Selection criteria.—The criteria used for the selection of a small business concern to receive a loan guarantee under this section are as follows:“(A) The selection criteria established under the memorandum of understanding referred to in subsection (a)(3). “(B) The extent to which the loans to be guaranteed would support the retention of defense workers whose employment would otherwise be permanently or temporarily terminated as a result of reductions in expenditures by the United States for defense, the termination or cancellation of a defense contract, the failure to proceed with an approved major weapon system, the merger or consolidation of the operations of a defense contractor, or the closure or realignment of a military installation. “(C) The extent to which the loans to be guaranteed would stimulate job creation and new economic activities in communities most adversely affected by reductions in expenditures by the United States for defense, the termination or cancellation of a defense contract, the failure to proceed with an approved major weapon system, the merger or consolidation of the operations of a defense contractor, or the closure or realignment of a military installation. “(D) The extent to which the loans to be guaranteed would be used to acquire (or permit the use of other funds to acquire) capital equipment to modernize or expand the facilities of the borrower to enable the borrower to remain in the national technology and industrial base available to the Department of Defense. “(3) Eligibility requirements.—To be eligible for a loan guarantee under the DELTA program, a borrower must demonstrate to the satisfaction of the Administrator that, during any 1 of the 5 preceding operating years of the borrower, not less than 25 percent of the value of the borrower’s sales were derived from—“(A) contracts with the Department of Defense or the defense-related activities of the Department of Energy; or “(B) subcontracts in support of defense-related prime contracts. “(e) Maximum Amount of Loan Principal.—With respect to each borrower, the maximum amount of loan principal for which the Administrator may provide a guarantee under this section during a fiscal year may not exceed $1,250,000. “(f) Loan Guaranty Rate.—The maximum allowable guarantee percentage for loans guaranteed under this section may not exceed 80 percent. “(g) Funding.—“(1) In general.—The funds that have been made available for loan guarantees under the DELTA program and have been transferred from the Department of Defense to the Small Business Administration before the date of the enactment of this Act [Dec. 2, 1997] shall be used for carrying out the DELTA program under this section. “(2) Continued availability of existing funds.—The funds made available under the second proviso under the heading ‘Research, Development, Test and Evaluation, Defense-Wide’ in Public Law 103–335 (108 Stat. 2613) shall be available until expended—“(A) to cover the costs (as defined in section 502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5))) of loan guarantees issued under this section; and “(B) to cover the reasonable costs of the administration of the loan guarantees.”

Trade Assistance Program for Small Business Concerns Adversely Affected by NAFTA

Section 509 of Pub. L. 105–135 provided that: “The Administrator shall coordinate Federal assistance in order to provide counseling to small business concerns adversely affected by the North American Free Trade Agreement.”

Private Sector Loan Servicing Demonstration Program

Pub. L. 104–208, div. D, title I, § 104(a), Sept. 30, 1996, 110 Stat. 3009–729, provided that: “(1) In general.—“(A) Demonstration program required.—Notwithstanding any other provision of law, the Administration shall conduct a demonstration program, within the parameters described in paragraph (2), to evaluate the comparative costs and benefits of having the Administration’s portfolio of disaster loans serviced under contract rather than directly by employees of the Administration. All costs of the demonstration program shall be paid from amounts made available for the Salaries and Expenses Account of the Administration. “(B) Initiation date.—Not later than 90 days after the date of enactment of this Act [Sept. 30, 1996], the Administration shall issue a request for proposals for the program parameters described in paragraph (2). “(2) Demonstration program parameters.—“(A) Loan sample.—The sample of loans for the demonstration program shall be randomly drawn from the Administration’s portfolio of loans made pursuant to section 7(b) of the Small Business Act [15 U.S.C. 636(b)] and shall include a representative group of not less than 30 percent of all loans for residential properties, including 30 percent of all loans made during the demonstration program after the date of enactment of this Act, which loans shall be selected by the Administration on the basis of geographic distribution and such other factors as the Administration determines to be appropriate. “(B) Contract and options.—The Administration shall solicit and competitively award one or more contracts to service the loans included in the sample of loans described in subparagraph (A) for a term of not less than one year, with 3 one-year contract renewal options, each of which shall be exercised by the Administration unless the Administration terminates the contractor or contractors for good cause. “(3) Term of demonstration program.—The demonstration program shall commence not later than October 1, 1997. “(4) Reports.—“(A) Interim reports.—Not later than 120 days before the expiration of the initial 4-year contract performance period, the Administrator shall submit to the Committees on Small Business of the House of Representatives and the Senate [Committee on Small Business of Senate now Committee on Small Business and Entrepreneurship of Senate] an interim report on the conduct of the demonstration program. The contractor shall be afforded a reasonable opportunity to attach comments to each such report. “(B) Final report.—Not later than 120 days after the termination of the demonstration program, the Administrator shall submit to the Committees on Small Business of the House of Representatives and the Senate [Committee on Small Business of Senate now Committee on Small Business and Entrepreneurship of Senate] a final report on the performance of the demonstration program, together with the recommendations of the Administrator for continuation, termination, or modification of the demonstration program.”

Increase of Amounts for Disaster Loans

Pub. L. 103–75, Aug. 12, 1993, 107 Stat. 740, provided in part: “That notwithstanding any other provision of law, the $500,000 limitation on the amounts outstanding and committed to a borrower provided in paragraph 7(c)(6) [now 7(d)(6)] of the Small Business Act [15 U.S.C. 636(d)(6)] shall be increased to $1,500,000 for disasters commencing on or after April 1, 1993.”

Congressional Findings of Microlending Expansion Act of 1992

Pub. L. 102–366, title I, § 112, Sept. 4, 1992, 106 Stat. 989, provided that: “The Congress finds that— “(1) nationwide, there are many individuals who possess skills that, with certain short-term assistance, could enable them to become successfully self-employed; “(2) many talented and skilled individuals who are employed in low-wage occupations could, with sufficient opportunity, start their own small business concerns, which could provide them with an improved standard of living; “(3) most such individuals have little or no savings, a nonexistent or poor credit history, and no access to credit or capital with which to start a business venture; “(4) women, minorities, and individuals residing in areas of high unemployment and high levels of poverty have particular difficulty obtaining access to credit or capital; “(5) providing such individuals with small-scale, short-term financial assistance in the form of microloans, together with intensive marketing, management, and technical assistance, could enable them to start or maintain small businesses, to become self-sufficient, and to raise their standard of living; “(6) banking institutions are reluctant to provide such assistance because of the administrative costs associated with processing and servicing the loans and because they lack experience in providing the type of marketing, management, and technical assistance needed by such borrowers; “(7) many organizations that have had successful experiences in providing microloans and marketing, management, and technical assistance to such borrowers exist throughout the Nation; and “(8) loans from the Federal Government to intermediaries for the purpose of relending to start-up, newly established and growing small business concerns are an important catalyst to attract private sector participation in microlending.”

Disadvantaged Small Business Status Decisions

Pub. L. 102–366, title II, § 221, Sept. 4, 1992, 106 Stat. 999, provided that: “(a) Publication of Decisions.—A decision issued pursuant to section 7(j)(11)(F)(vii) of the Small Business Act (15 U.S.C. 636(j)(11)(F)(vii)) shall—“(1) be made available to the protestor, the protested party, the contracting officer (if not the protestor), and all other parties to the proceeding, and published in full text; and “(2) include findings of fact and conclusions of law, with specific reasons supporting such findings or conclusions, upon each material issue of fact and law of decisional significance regarding the disposition of the protest. “(b) Precedential Value of Prior Decisions.—A decision issued under section 7(j)(11)(F)(vii) of the Small Business Act that is issued prior to the date of enactment of this Act [Sept. 4, 1992] shall not have value as precedent in deciding any subsequent protest until such time as the decision is published in full text.”

Reauthorization of Bond Waiver Test Program

Pub. L. 102–190, div. A, title VIII, § 813(a)–(e), Dec. 5, 1991, 105 Stat. 1424, authorized the Secretary of Defense to grant surety bond exemptions to certain participants in the Minority Small Business and Capital Ownership Development Program who were awarded construction contracts by the Department of Defense before Oct. 1, 1994.

Emergency Direct Loans for Small Business Concerns Located in Communities Adversely Affected by Troop Deployments During Persian Gulf Conflict

Pub. L. 102–190, div. A, title X, § 1087, Dec. 5, 1991, 105 Stat. 1483, authorized emergency direct loans to small business concerns located in counties in which at least 5 small business concerns suffered severe economic injury resulting from deployment, after July 31, 1990, of troops in connection with Persian Gulf conflict, provided that loan amounts could not exceed $50,000 to any small business concern, and provided for source of loan funds, applications for loans, definitions, regulations to implement loan program, and expiration of loan authority at end of 270-day period beginning on date on which loan applications were first accepted.

Termination of Microloan Demonstration Program

Pub. L. 102–140, title VI, § 609(j), Oct. 28, 1991, 105 Stat. 831, as amended by Pub. L. 103–403, title II, § 203, Oct. 22, 1994, 108 Stat. 4181, provided that: “The demonstration program established by subsection (h) [amending this section] shall terminate on October 1, 1997.”

References in Other Laws to GS–16, 17, or 18 Pay Rates

References in laws to the rates of pay for GS–16, 17, or 18, or to maximum rates of pay under the General Schedule, to be considered references to rates payable under specified sections of Title 5, Government Organization and Employees, see section 529 [title I, § 101(c)(1)] of Pub. L. 101–509, set out in a note under section 5376 of Title 5.

Test Program for Use of Bond Waiver Authority To Assist Certain Small Disadvantaged Business Concerns

Pub. L. 101–189, div. A, title VIII, § 833, Nov. 29, 1989, 103 Stat. 1509, which directed Secretary of Defense and Small Business Administration to establish a program for fiscal years 1990 and 1991 to test use of authority provided by subsec. (j)(13)(D) of this section, and that under the test program, the Secretary of Defense was to make every reasonable effort during each such fiscal year to award not less than 30 contracts for construction projects (including repair and alteration of existing facilities) to participants in Minority Small Business and Capital Ownership Development Program of Small Business Administration granted surety bond exemptions under such authority, was repealed by Pub. L. 102–190, div. A, title VIII, § 813(f), Dec. 5, 1991, 105 Stat. 1424.

Definition of Terms Used in Pub. L. 100–656

Pub. L. 100–656, § 2, Nov. 15, 1988, 102 Stat. 3854, as amended by Pub. L. 101–37, § 3, June 15, 1989, 103 Stat. 70, provided that: “For the purposes of this Act [see Short Title of 1988 Amendment note set out under section 631 of this title]— “(1) the term ‘Administration’ means the Small Business Administration; “(2) the term ‘Administrator’ means the Administrator of the Small Business Administration, unless otherwise indicated; “(3) the term ‘Business Opportunity Specialist’ means the Administration employee responsible for providing business development assistance to Program Participants pursuant to sections 7(j) and 8(a) of the Small Business Act (15 U.S.C. 636(j), 637(a)); “(4) the term ‘disadvantaged owners’ means those individuals upon whom eligibility is based for participation in the Program and the award of subcontracts pursuant to section 8(a) of the Small Business Act (15 U.S.C. 637(a)); “(5) the term ‘minority owned businesses’ means business concerns that are at least 51 percent owned and controlled by one or more individuals who belong to those groups described or identified pursuant to section 2(e)(1)(C) of the Small Business Act (15 U.S.C. 631(e)(1)(C)); “(6) the term ‘Program’ means the Minority Small Business and Capital Ownership Development Program established by section 7(j)(10) of the Small Business Act (15 U.S.C. 636(j)(10)), unless otherwise indicated; “(7) the term ‘Program Participant’ means a small business concern participating in the Program; and “(8) the term ‘Program Participation Term’ means the fixed period of time assigned to a Program Participant pursuant to section 7(j)(10)(A)(i) of the Small Business Act (15 U.S.C. 636(j)(10)(A)(i)) prior to the date of enactment of this Act [Nov. 15, 1988].”

Congressional Findings and Declaration of Purposes of Pub. L. 100–656

Pub. L. 100–656, title I, § 101, Nov. 15, 1988, 102 Stat. 3855, provided that: “(a) Findings.—The Congress finds that—“(1) the Capital Ownership Development Program administered by the Small Business Administration and the award of contracts pursuant to section 8(a) of the Small Business Act [15 U.S.C. 637(a)] remain a primary tool for improving opportunities for small business concerns owned and controlled by socially and economically disadvantaged individuals in the Federal procurement process and bringing such concerns into the nation’s economic mainstream; “(2) although some progress has resulted from the Program, it has generally failed to meet its objectives, which remain as valid now as when the Program was initiated; “(3) too few concerns that have exited the Program have been prepared to compete successfully in the open marketplace on competitive procurements, and many concerns have developed an unhealthy dependency on sole-source contracts by the time they are required to leave the Program; “(4) the application and certification process for admitting new participants to the Program is inordinately lengthy and burdensome; “(5) the Administration has often not efficiently and equitably administered and managed the Program in a manner that provided clear lines of responsibility for implementing and monitoring many of the administrative duties under the Program; “(6) the Administration and some program participants have given insufficient attention and support to the business development goals of the Program and instead have focused almost entirely on the size of contract awards or the number of firms certified to participate in the Program; “(7) many Federal procuring agencies have failed to identify and offer the necessary amount of contract support in order to allow for diversification and growth of disadvantaged businesses participating in the Program; “(8) contract support as well as business development expenses have been misused both by the Administration and Program participants and have not been equitably distributed pursuant to objective criteria; “(9) the widespread perception of undue political influence in the operation and administration of the Program has significantly contributed to the Program’s poor image and has deterred utilization of the Program by socially and economically disadvantaged concerns and by Federal procuring agencies; and “(10) it is imperative that increased competition and other substantial reforms be accomplished in the Program in order to promote the Congressionally mandated business development objectives and purposes. “(b) Purposes.—The purposes of this Act [see Short Title of 1988 Amendment note set out under section 631 of this title] therefore are to—“(1) affirm that the Capital Ownership Development Program and the section 8(a) [15 U.S.C. 637(a)] authority shall be used exclusively for business development purposes to help small businesses owned and controlled by the socially and economically disadvantaged to compete on an equal basis in the mainstream of the American economy; “(2) affirm that the measure of success of the Capital Ownership Development Program, and the section 8(a) authority, shall be the number of competitive firms that exit the Program without being unreasonably reliant on section 8(a) contracts and that are able to compete on an equal basis in the mainstream of the American economy; “(3) ensure that program benefits accrue to individuals who are both socially and economically disadvantaged; “(4) increase the number of small businesses owned and controlled by such individuals from which the United States may purchase products and services (including construction work); and “(5) ensure integrity, competence, and efficiency in the administration of business development services and the Federal contracting opportunities made available to eligible small businesses.”

Employee Training and Evaluation

Pub. L. 100–656, title IV, § 410, Nov. 15, 1988, 102 Stat. 3879, as amended by Pub. L. 101–37, § 18, June 15, 1989, 103 Stat. 74, provided that: “(a) Training Requirements for Business Opportunity Specialists.—(1) In each Small Business Administration field office responsible for assisting one or more Program Participants there shall be a position designated as a Business Opportunity Specialist. To the maximum extent practicable the Administration shall assure that an adequate number of Business Opportunity Specialists are assigned to each district office to carry out the responsibilities of sections 7(j) and 8(a) of the Small Business Act (15 U.S.C. 636(j), 637(a)) and to assist Program Participants. “(2) The Administration shall take such actions as may be appropriate to ensure that any person employed as a Business Opportunity Specialist receives adequate periodic training to assure such employee is capable of assisting Program Participants to fully utilize the Program and to meet the requirements of the Small Business Act [15 U.S.C. 631 et seq.], as amended by this Act. “(b) Pilot Program.—(1) Within 180 days after the effective date of this subsection [Nov. 15, 1988] the Administrator shall designate three regions of the Administration to conduct a pilot program pursuant to the provisions of this subsection. The designated regions shall contain approximately 30 per centum of the total number of Program Participants as of the time of designation. “(2) A Business Opportunity Specialist employed in a Region designated pursuant to paragraph (1), in addition to other assigned duties and responsibilities, shall—“(A) conduct contract negotiations on behalf of the Administration for contracts awarded pursuant to section 8(a) of the Small Business Act (15 U.S.C. 637(a)) when performance will be rendered by one or more firms in such Specialist’s assigned portfolio; “(B) facilitate and otherwise assist such firms in negotiating for the receipt of contracts to be let pursuant to such section. “(3) The Administration shall take such actions as may be appropriate to train and qualify such Specialists to perform the negotiations required pursuant to paragraph (2). “(4) To the extent practicable, the Administrator shall ensure that the performance appraisal system applicable to a Business Opportunity Specialist employed in a region designated pursuant to paragraph (1) affords substantial recognition to how well such Specialist’s assigned portfolio of concerns participating in the program established by section 7(j)(10) of the Small Business Act (15 U.S.C. 636(j)(10)) are achieving competitiveness and furthering the business development purposes of the program. “(5) The Administration shall establish personnel positions for Business Opportunity Specialists employed in the regions designated pursuant to paragraph (1) that are classified at a grade level of the General Schedule that are sufficient, in the opinion of the Administrator, to attract and retain highly qualified personnel. “(c) Report and Pilot Program Termination.—(1) Within 120 days after the termination of the pilot program conducted pursuant to subsection (b), the Administration shall issue a report to the Committees on Small Business of the Senate and of the House of Representatives [Committee on Small Business of Senate now Committee on Small Business and Entrepreneurship of Senate] on the effectiveness of the pilot. Such report shall contain such recommendations for administrative or legislative change as may be appropriate. “(2) The pilot program conducted pursuant to subsection (b) shall be terminated three years after the date on which the Committees on Small Business of the Senate and of the House of Representatives [Committee on Small Business of Senate now Committee on Small Business and Entrepreneurship of Senate] receive written notification from the Administrator that the pilot is in full operation in each of the three designated pilot regions.”

General Accounting Office Report

Pub. L. 100–656, title V, § 504, Nov. 15, 1988, 102 Stat. 3882, directed Comptroller General of the United States to conduct a review of operation of Minority Small Business and Capital Ownership Development Program authorized by subsec. (j)(10) of this section and contract assistance provided pursuant to section 637(a)(15) of this title commencing within 180 days of Nov. 15, 1988, and concluding Sept. 30, 1991, such review to report on implementation of provisions of Pub. L. 100–656 by Small Business Administration and various executive departments and agencies providing contracting opportunities to the Program, and directed Comptroller General to prepare a report summarizing findings of review, make such recommendations as may be appropriate, and transmit report to Committees on Small Business of the Senate and House of Representatives by Feb. 1, 1992.

Commission on Minority Business Development

Pub. L. 100–656, title V, § 505(a)–(g), Nov. 15, 1988, 102 Stat. 3883, as amended by Pub. L. 101–37, § 20, June 15, 1989, 103 Stat. 74; Pub. L. 101–574, title II, § 211, Nov. 15, 1990, 104 Stat. 2821; Pub. L. 102–366, title II, § 231(a), Sept. 4, 1992, 106 Stat. 1001; Pub. L. 103–160, div. A, title IX, § 904(f), Nov. 30, 1993, 107 Stat. 1729, established the Commission on Minority Business Development, set out its duties, powers, membership, administration, and personnel, and provided that it cease to exist within 90 days after the date that it transmitted its final report to Congress and to the President or Sept. 30, 1992, whichever was later.

Limitations on Spending Authority

Pub. L. 100–656, title VIII, § 802(f), Nov. 15, 1988, 102 Stat. 3899, provided that: “(1) Any new credit authority or authority to enter into contracts provided for in this Act [see Short Title of 1988 Amendment note set out under section 631 of this title] is to be effective for any fiscal year only to such extent or in such amounts as are provided in appropriation Acts. “(2) No funds are authorized to be appropriated in subsequent appropriation Acts to the Administration for the purpose of making grants of financial assistance under the so called ‘Business Development Expense’ program to any firm participating in the programs authorized by section 7(j)(10) or section 8(a) of the Small Business Act (15 U.S.C. 636(j)(10) and 637(a)).”

Certified Loan Program; Expanded Participation; Reports to Congress

Pub. L. 100–590, title I, § 102(b), Nov. 3, 1988, 102 Stat. 2992, provided that: “The Administration shall take appropriate steps to expand participation in the certified loan program and shall report to the Small Business Committees of the Senate and the House of Representatives on the amount of loans approved and the amount of losses sustained under the provisions of section 7(a)(19) of the Small Business Act [15 U.S.C. 636(a)(19)]. An interim report shall be submitted not later than one year after date of enactment of this Act [Nov. 3, 1988] and a final report shall be submitted not later than 18 months after the date of enactment.”

Similar provisions were contained in Pub. L. 100–533, title III, § 302(b), Oct. 25, 1988, 102 Stat. 2693.

Pipeline Loans or Previous Disasters

Pub. L. 99–272, title XVIII, § 18006(b), Apr. 7, 1986, 100 Stat. 366, as amended by Pub. L. 99–349, title I, July 2, 1986, 100 Stat. 718, provided that: “Notwithstanding the amendments made by this section [amending sections 636 and 647 of this title], sections 18002 [amending provisions set out as a note under section 631 of this title] and 18016 [amending section 632 of this title], or any other provision of law, the Small Business Administration shall continue to accept, process, and approve loan applications under paragraphs (1) through (4) of subsection [section] 7(b) of the Small Business Act [15 U.S.C. 636(b)(1) to (4)] and shall obligate and disburse loan funds on account of disasters which occurred prior to October 1, 1985, and with respect to which a disaster declaration application was submitted prior to October 1, 1985, even if any such application is filed after the date of the enactment of this Act [Apr. 7, 1986].”

Determination of Natural Disaster by Secretary of Agriculture To Be Deemed Disaster Declaration by Administrator of Small Business Administration; Disasters Commencing Between January 1, 1983, and September 30, 1983

Pub. L. 98–166, title I, § 101, Nov. 28, 1983, 97 Stat. 1079, provided that for disasters commencing between Jan. 1, 1983, through Sept. 30, 1983, determination of a natural disaster by the Secretary of Agriculture pursuant to 7 U.S.C. 1961 would be deemed a disaster declaration by the Administrator of the Small Business Administration for purposes of determining eligibility for assistance under 15 U.S.C. 636(b)(1) for agricultural enterprises as defined in 15 U.S.C. 647(b).

Reports to Congress; Default Rate of Loans

Pub. L. 97–35, title XIX, § 1907 Aug. 13, 1981, 95 Stat. 777, required the Small Business Administration to submit to Congress, not later than Feb. 28, 1984, and 1985, reports containing specific information on the aggregate number, dollar value, and default rate of all loans with respect to 15 U.S.C. 636(a)(5), (6)(C), (8)(A).

Business Plans; Submittal by Concerns Eligible To Receive Contracts

Pub. L. 96–481, title I, § 106(b), Oct. 21, 1980, 94 Stat. 2322, provided that: “Notwithstanding the provisions of subsection (a) of this section [amending subsec. (j)(10)(A)(i) of this section], for concerns eligible to receive contracts pursuant to section 8(a) of the Small Business Act [section 637(a) of this title] on the effective date of the amendment made by this section [Oct. 21, 1980], each such concern shall submit to the Small Business Administration within two months after the promulgation of final regulations issued within one hundred and twenty days after the enactment of this Act [Oct. 21, 1981] the business plan required under section 7(j)(10)(A)(i) of the Small Business Act, as amended by subsection (a) of this section [subsec. (j)(10)(A)(i) of this section]: Provided however, That the period of time required under section 7(j)(10)(A)(i) of the Small Business Act, as amended by subsection (a) of this section, shall be fixed as mutually agreed upon by the program participant and the Small Business Administration prior to the awarding or extending of contracts to such concern pursuant to section 8(a) of the Small Business Act after June 1, 1981, but the period shall be fixed in no case later than eighteen months after the effective date of this Act: Provided further, That no determination made under this paragraph shall be considered a denial of total participation for the purposes of section 8(a)(9) of the Small Business Act.”

Small Business Employee Ownership; Congressional Findings and Purposes

Pub. L. 96–302, title V, §§ 502, 503, July 2, 1980, 94 Stat. 850, 851, provided that: “Sec. 502. The Congress hereby finds and declares that—“(1) employee ownership of firms provides a means for preserving jobs and business activity; “(2) employee ownership of firms provides a means for keeping a small business small when it might otherwise be sold to a conglomerate or other large enterprise; “(3) employee ownership of firms provides a means for creating a new small business from the sale of a subsidiary of a large enterprise; “(4) unemployment insurance programs, welfare payments, and job creation programs are less desirable and more costly for both the Government and program beneficiaries than loan guarantee programs to maintain employment in firms that would otherwise be closed, liquidated, or relocated; and “(5) by guaranteeing loans to qualified employee trusts and similar employee organizations, the Small Business Administration can provide feasible and desirable methods for the transfer of all or part of the ownership of a small business concern to its employees. “Sec. 503. (a) The purposes of this title [enacting sections 632(c) and 636(a)(8) of this title and provisions set out as notes under sections 631 and 636 of this title] are—“(1) to provide that a qualified employee trust shall be eligible for loan guarantees under section 7(a) of the Small Business Act [subsec. (a) of this section] with respect to a small business concern, regardless of the percentage of stock of the concern held by the trust, and “(2) to provide in section 505 of this Act [enacting subsec. (a)(8) of this section] authority to address the specific case in which the Small Business Administration guarantees loans under section 7(a) of the Small Business Act [subsec. (a) of this section] for purposes of providing funds to a qualified employee trust (and other employee organizations which are treated as qualified employee trusts) for the purchase, by at least 51 percent of the employees, of at least 51 percent of the stock of business which is operated for profit and which is—“(A) a small business concern, or “(B) a corporation which is controlled by another person if, after the plan for the purchase of such corporation is carried out, such corporation would be a small business concern. “(b) Nothing in this title shall be construed to prohibit the Small Business Administration from making loan guarantees under section 7(a) of the Small Business Act [subsec. (a) of this section] to qualified employee trusts which own less than 51 percent of the stock of a continuing business.”

Disaster Relief Authority; Study and Report on Consolidation

Pub. L. 94–305, title I, § 101, June 4, 1976, 90 Stat. 663, required the President to comprehensively review all Federal disaster loan authorities and to report to Congress by Dec. 1, 1976, with recommendations and legislative proposals for the most effective and efficient delivery of disaster relief, including possible consolidation of authorities.

Disaster Loans; Special Provisions for Applications Received on or Before March 19, 1981; Assistance to Hardship Applicants

Pub. L. 97–35, title XIX, § 1916, Aug. 13, 1981, 95 Stat. 780, provided for special provisions for applications for disaster loans under 15 U.S.C. 1636(b)(1), (2), or (4) received on or before Mar. 19, 1981, with assistance to hardship applicants.

Disaster Loans; Interest Rate; Cancellation of Loans

Pub. L. 93–24, § 9, Apr. 20, 1973, 87 Stat. 25, provided that: “Notwithstanding the provisions of any other law, any loan made by the Small Business Administration in connection with any disaster occurring on or after the date of enactment of this Act [Apr. 20, 1973] under sections 7(b)(1), (2), or (4) of the Small Business Act (15 U.S.C. 636(b)(1), (2), or (4)) [subsec. (b)(1), (2), or (4) of this section] shall bear interest at the rate determined under section 324 of the Consolidated Farm and Rural Development Act, as amended by section 4 of this Act [section 1964 of Title 7, Agriculture]. No portion of any such loan shall be subject to cancellation under the provisions of any law.”

Interest Rates on Loans To Meet Regulatory Standards

Pub. L. 93–237, § 2(d), Jan. 2, 1974, 87 Stat. 1024, provided that: “In no case shall the interest rate charged for loans to meet regulatory standards be lower than loans made in connection with physical disasters.”

Election of Benefits

Pub. L. 92–385, § 1(c), Aug. 16, 1972, 86 Stat. 555, provided that: “Any person who (1) suffers any loss or damage as a result of a major disaster as determined by the President which occurred prior to the date of enactment of this Act [August 16, 1972], (2) is eligible for assistance under the amendment made by subsection (a), and (3) is otherwise eligible for benefits greater than those provided by the amendment made by subsection (a), may elect to receive such greater benefits.”

Fund for Management Counseling